E-Trade Execs Accept Corporate Reforms To End MBS Suit

Law360, New York (November 5, 2012, 2:33 PM EST) -- E-Trade Financial Corp. executives on Friday agreed to implement corporate governance reforms to end a shareholder class action claiming the execs withheld information about E-Trade's mortgage-backed securities investments and purposefully authorized a $200 million repurchase of artificially inflated company stock.

The parties asked a New York federal court to preliminarily approve their settlement, which grants stronger supervisory roles to several company committees in an effort to strengthen the company's risk management practices and ensure that shareholders are well informed of company decisions.

“Plaintiffs' counsel's recommendation that...
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